WeunderstandIndianaviation

www.capaindia.com
CAPAIndia
AviationResearch
Reportsin2014
INDIA

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CAPAIndiaSectoralAviationResearchReports2014
CAPA India is the leading aviation advisory, research and knowledge
practiceinSouthAsia.Withmorethan10yearsonthegroundexperience
in India and the regions largest dedicated team of aviation and analysts
and researchers, we are uniquely positioned to deliver incisive sectoral
reportsacrosstheaviationvaluechain.Upcomingreportsin2014include:
o CAPAIndiaAviationOutlookReport: 15June2014
o GroundHandlingReport: 7March2014
o AirTrafficManagementReport: 31March2014
o Business&GeneralAviationReport: 30April2014
o BilateralPolicyReport: 15May2014
o MROReport: 31May2014
o AirlineAncillaryRevenueReport: 31May2014
o AviationSkills&TrainingReport: 15June2014
o AirCargo&ExpressReport: 30June2014
o Airport&TravelRetailReport: 30September2014
Indian aviation is complex and dynamic and for businesses operating or
investing in such an environment access to indepth research and analysis
based on accurate and timely data is critical. This is CAPA's strength. We
understand the local and international environments, we interact with the
industry on a daily basis and we continuously monitor trends across the
sector.Ourresearchcapabilities,databasesandextensivecontactswithkey
stakeholdersingovernmentandindustryareunmatched.
These are key differentiators. Rather than being desktop studies, CAPA
Indias reports are based on months of indepth engagement with the
industry often involving interviews with hundreds of stakeholders. The
combination of primary research, our indepth industry knowledge and
rigorous data analysis allow us to present clear, thoughtful and practical
perspectives.
Thesecompellingreportsthereforedeliverexceptionalvaluebyleveraging
our extensive presence and capabilities in the market to provide access to
research and insights which would otherwise be too expensive or
logisticallydifficultforanyindividualcompanytoconduct.
As a result CAPAs research reports have been used extensively by global
organisations from a wide range of sectors with exposure to Indian
aviationtosupporttheirstrategicplanninginthemarket,including:
Airlines
AirportOperators
AircraftLessors
AircraftManufacturers
AirNavigationServiceProviders
AviationFuelSuppliers
Banks&FinancialInstitutions
Engineers/Architects
GroundHandlers
Hotel&Resort
Operators
ITCompanies
MROs
TourismAuthorities
The following pages outline the range of upcoming reports with
informationonreleasedatesandpricing.

AboutCAPAIndia
Background
CAPAwasfoundedin1990and
hasbeenestablishedinIndiafor
morethan10years
Experience
Portfolioofmorethan100
consultingstudies,research
reportsandknowledgepaperson
SouthAsianaviation
Resources
Largestdedicatedontheground
aviationresearchandanalyst
teaminIndia
Data
Compiledanddevelopedthe
regionsmostcomprehensiveand
sophisticateddatabasesacrossthe
aviationvaluechain
Services
Additionalservicesincludecapital
advisory,educationandtraining,
aircraftadvisory,dataanalytics
andknowledgeprocess
outsourcing
Clients
CAPAsglobalclientlistincludes
morethan500ofthemost
recognisedcorporationsinglobal
aviation

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OtherCAPAIndiaResearchServices
CAPA India Aviation Monitor published 8 times a year provides
unique insights which are not available elsewhere, into the financial,
commercial, operational performance and fleet plans of listed and
unlisted carriers; airport operator and infrastructure developments;
domesticandinternationaltraffic,yieldandcostanalysis;andthelatest
policy and regulatory updates. Subscribers also receive appendices
consistingofdetailedmarketdata.
Aviationbusinesseswithmillionsofdollarsofvalueatriskcannot
afford to be caught out by unexpected developments in a fluid
market.
These monitors are invaluable for any organisation with exposure to
the Indian market, providing rigorous analysis and a forward
perspective on the direction of the sector, leveraging CAPAs extensive
onthegroundpresenceandresearchcapabilitiesinIndia.
The standard annual subscription is US$19,999, however a 25%
discountisavailableuntil7March2014,bringingthecostdowntojust
US$14,999. For more information contact Tarika Wadhwa on
twadhwa@centreforaviation.com

Board presentations and industry briefings on risks, opportunities

and the outlook for Indian aviation; including teleconsulting on
specifictopicsofinterest.

CAPARiskAdvisoryServices
Company monitoring and asset management services for banks,
investors, aircraft and engine lessors providing ontheground intelligence
on key strategic or operational concerns; uptodate traffic, yield and
commercial analysis; fleet operating performance; financial status of
carriers; debt repayment history; current and prospective sources of
financing; maintenance procedures; airworthiness issues; management
changes; policy and regulatory developments which could have a material
impactonthebusiness;andmacroeconomicissues.Keyrisksandareasof
concernarehighlightedandsupportedbyindependentdataandevidence
based research. For more information contact Gurdeep Aggarwal on
gaggarwal@centreforaviation.com

CAPAIndiaConsulting&AdvisoryServices
CAPA India offers a comprehensive range of consulting and advisory
services including strategic and business planning, risk assessments, due
diligence, industry trends analysis, forecasting, market surveys and
customisedresearch.
Ouradvisoryservicesareuniqueinbeingabletocombinelocalknowledge
and international experience gained through more than 600 global
assignments.Wehavecompletedinexcessof70studiesinSouthAsiaalone
for airlines, airports, investors, governments, policy makers, ground
handlers, maintenance providers, general aviation operators and
technologycompanies.

ContactUs

Formoreinformationortoorder
anyofourproductsorservices,
pleasecontacteither:

VishalBhadola
AssociateManager
+911146921052
vb@centreforaviation.com

Or

TarikaWadhwa
CommercialOfficer
+911146921036
twadhwa@centreforaviation.com

CAPAProposition

Overthelast10yearswehave
developedareputationfor
focusingonourclientscore
requirementsanddelivering
solutionsfocusedoutcomeswith
integrity.

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CAPAIndiaAviation
OutlookReport2014/15

CAPA Indias flagship report, the annual India Aviation Outlook is

keenly anticipated by the industry each year as the leading analysis
of the direction of one of the worlds most important emerging
markets. CAPA has a strong and established track record in
accurately identifying key trends and developments in the Indian
market, both on an annual and long term basis. Each edition
includes:
CAPAsforecastsfortraffic,capacityandyields;
profitandlossprojectionsforeachcarrier;
fleetinductionplansandexpectedneworders;
detailedriskassessmentofeachIndiancarrier.
An assessment of the strategic plans of all domestic carriers is
presentedincludingprospectsforforeignairlineinvestment,capital
raising, risk assessments and prospects for new entrants
particularlyintheregionalsector.
Meanwhileinternationalstrategiesandnetworkplansarereviewed
including expected bilateral developments, prospects for code
sharingandscenariosforglobalalliances.Thereportalsoaddresses
airportprivatisationanddevelopmentprogrammes,corporatisation
of air navigation services, expected policy and regulatory
developmentsandtheoutlookforancillarysectors.
The 2014/15 India Aviation Outlook will be further expanded to
includecompanyvaluationsforairlinesandairportswithestimated
for their weighted average cost of capital; assessment of domestic
cargo profitability for Indian carriers; and domestic and
international cargo capacity and traffic flows on the top ten routes
fromeachofthetenlargestairports.

ReleaseDate:15June2014
Earlybirdpriceto7March: US$2555
Advancepurchasepriceto31May: US$3555
Regularpricefrom1June: US$4555

CAPAIndiaGround
HandlingReport2014

Indias ground handling industry is preparing for transformation as

the new sectoral policy is set to be introduced shortly. The changes
will have cost and delivery implications for airlines, incumbent
operators and global ground handlers seeking to participate in one
ofthekeygrowthmarketsofthecomingdecade.
Thisuniquereportwilladdress:
the outlook for traffic growth in both the passenger and
cargosegmentstoFY23;
analysis of the key handling segments including ramp,
passenger and baggage loading/unloading, cargo handling,
aircraft servicing, cleaning, security, transportation and
terminalservices;
differentiated airline strategies for selfhandling and
outsourcing addressing full service/low cost carriers,
Indian/foreignairlines,passenger/freightoperators;
demandforspecialisthandlingforsensitivefreight;

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benchmarking and SWOT analysis of incumbent ground
handlers on market share, competitive positioning, cost and
quality of service delivery, customer perceptions, and
financialmetrics;
handlingrevenue,profitabilityandassetallocationattheten
largestairports;
manpower utilisation, use of contract labour and projected
requirements;
investment requirements in technology, equipment and
training;
expectedimpactofSupremeCourtrulingonimplementation
ofthegroundhandlingpolicy;
economicregulationofthesector;
jointventureprospectsforinternationalserviceproviders;
andupcomingtendersfornewgroundhandlingconcessions.

ReleaseDate:7March2014
Advancepurchasepriceto6March: US$7555
Regularpricefrom7March: US$8555

CAPAIndiaAirTraffic
ManagementReport2014

WithIndianairtrafficsettotripleoverthenextdecadethishas
majorimplicationsforairtrafficmanagement.Thisreportwill
addressacomprehensivesetofissuesincluding:
IndiasstrategicframeworkforATMoverthenext10years;
TrafficandaircraftmovementsforecaststoFY23for
domestic,internationalandoverflighttraffic;
Infrastructureandequipmentrequirestosupportprojected
growth,includingCNSandmeteorological;
Manpowerandtrainingrequirements;
ImplicationsforlicensingofIndiancontrollers;
Prospectsforenhancedmilitarycivilcooperationforsharing
ofairspace;
HowwellisIndiaplacedtoharmonisewithitsairspacewith
globalinitiativesinairnavigationsuchasSESARand
NextGEN;
ImpactofIndiassatellitebasednavigationsystem,GAGAN;
BenchmarkingofIndianoperationsv.globalstandards;
StatusofnewproceduresincludingPerformanceBased
Navigation,GatetoGateandcontinuousdescent;
Implementationofsafetymanagementsystems;
Chargingstructuresandeconomicregulation;
ProspectsforcorporatisationandlessonsforIndiafrom
globalexperience.

ReleaseDate:31March2014
Earlybirdpriceto7March: US$4555
Advancepurchasepriceto30March: US$5555
Regularpricefrom31March: US$6555

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CAPAIndiaBusiness&
GeneralAviationReport
2014

With its vast territory, rapid economic growth, diverse terrain and
often poor surface transportation options, India is an ideal market
for general aviation operations. Opportunities exist in corporate
travel, luxury tourism, sightseeing, pilgrimages, election campaigns,
aerial surveying, security, offshore platforms and providing vital
connectivity to remote and mountainous regions. However the
sector is underperforming as a result of the huge challenges which
itfacesandwhichhavecurtailedgrowthinrecentyears.
CAPA has conducted the most comprehensive research and market
analysis of Business & General Aviation in India. We conducted
interviews with key stakeholders, compiled and analysed fleet and
orders data, reviewed government policy proposals, and studied
traffictrendstoarrive atanaccurate pictureofthisoftenneglected
sector.Topicscoveredinthereportinclude:
Structure of the GA market including traffic, fleets,
equipmenttype,operatorsandbusinessmodels;
Market demand and operations including key drivers,
products,pricing,coststructuresandprofitability;
Review of ground infrastructure including airports,
heliports,FBOs,VIPterminalsandplanneddevelopments;
Analysisofairspaceissuesincludingavailabilityofdedicated
corridorsandoperatingrestrictions;
Review of the policy, regulatory and fiscal frameworks
within which GA operates and the impact this has on
viabilityandinvestment;
Availability of aircraft finance from Indian banks and non
bankfinancialinstitutions;
Status of maintenance, repair and overhaul services
availableincountryandthecapabilitiesofkeyplayers;
Manpower requirements and the need to address the
shortageofskillsandtraining;
CAPAs10yearGAfleetforecastandpollofkeystakeholders
ontheoutlookforthesector.

ReleaseDate:30April2014
Earlybirdpriceto7March: US$4555
Advancepurchasepriceto15April: US$5555
Regularpricefrom16April: US$6555

CAPAIndiaBilateral
PolicyReport
International traffic to/from India has demonstrated strong and
steady growth of 11.3% per annum over the last decade, with
positive growth reported in every year during this period. The
internationalmarkethasalsobecomemorecompetitive asnotonly
have more Indian carriers launched international services but
foreign airlines from all regions have also substantially increased
their capacity into India, with Gulf carriers leading the way. With
foreign airline investment now permitted, this adds an interesting
new dimension to Indias strategy with respect to bilaterals and
marketaccess.

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Inthistimelyreportweaddress:
The global outlook and its relevance to Indias aviation
policy, both currently and in terms of establishing a way
forward;
Indias historical bilateral policy and the impact of
protectionism on the national economy and on Indias
carriers;
Thedirectionoftrade,tourismandinvestmentflowsandthe
extenttowhichmarketaccessisalignedwiththeseflows;
The bilateral policy dilemma, balancing the interests of
competingstakeholders;
Detailed analysis of existing bilateral agreements by key
markets in terms of seats, frequencies, aircraft size and
pointsofcall,andtheirdevelopmentoverthelast10years;
Projected seat entitlements that will be required by global
region over the next 10 years to meet expected demand for
internationaltravelto/fromIndia;
Allocating Indian carrier seat entitlements amongst an ever
largernumberofcarriersoperatinginternationalservices;
Impactofincreasedmarketaccesstononmetrocitiesonthe
hubambitionsofIndiangatewayairports;
Impact of global alliances, foreign airline investment and
crossborderjointventuresonbilateralpolicy;
Developing a roadmap for the future of Air India to address
oneofthekeydysfunctionalitiesinbilateralpolicy;
The bilateral policy settings that would best serve Indias
national interest and the potential for it to develop as a
majorregionalandinternationalhub.

ReleaseDate:15May2014
Earlybirdpriceto7March: US$5555
Advancepurchasepriceto30April: US$6995
Regularpricefrom1May: US$8555

CAPAIndiaMROReport
2014

Indias projected fleet expansion, the ageing of existing equipment,

induction of new aircraft types, a growing aerospace components
sectorandthepossibilityofanindigenousregionalaircraftprogram
all create challenges and opportunities for airline operators and
MROsuppliers.
This report will provide indepth analysis of the size, direction and
prospects for the market based on a combination of robust data
analysis and extensive engagement with airlines, maintenance
organisations and government to a level which has not previously
beenconductedinIndia.Coverageincludes:
fleetprofilesand10yeardeliveryforecasts;
expectedtiming,volumeandvalueofupcomingchecks;
review of airline strategies for airframe, engine and
componentsmaintenance;
outsourcing strategies and use of powerbythehour;
regulatoryandfiscalissues;

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assessment of current infrastructure and capabilities and
planneddevelopments;
identificationofkeyserviceprovidersandnewentrants;
prospectsforonshoreservicedelivery;
skills requirements quantification and forecasts for market
valueforlinemaintenance,engines,structural,modifications
andcompletions,andrefurbishment.

ReleaseDate:31May2014
Earlybirdpriceto7March: US$5555
Advancepurchasepriceto15May: US$6995
Regularpricefrom16May: US$8555

CAPAIndiaAirline
AncillaryRevenueReport
2014

CAPA is conducting a ground breaking study into the potential for

the development of ancillary revenues by Indian carriers which
couldmakeamajorcontributiontorestoringindustryprofitability.
Thereportisbasedonextensiveprimaryresearchamongstairlines,
passengers, advertising agencies, retailers and other prospective
revenuepartnersandwillcover:
Evolutionofairlinebusinessmodelsfromfullservicetolow
costandhybrid;
Analysis of airline financials including costs, revenue
(includingnonoperatingandother)andprofitability;
Reviewofkeyancillaryrevenuestreamsincluding:
o Advertising and promotional opportunities e.g.
livery, onboard, collateral, website, inflight
entertainment,onboardsurveysandsampling;
o Product unbundling and enhancement e.g. baggage
fees, food and beverage, seat selection, priority
boarding,wirelessconnectivity;
o Retail sales e.g. onboard duty and free and gifts,
cataloguesales,website;
o Saleoffrequentflyerpointstoprogrammepartners.
Status of ancillary revenue activities in India by airlines and
by segment and their contribution to overall financial
performance; and technology capabilities; and the impact of
regulatoryrestrictions;
Preparedness of Indian carriers to pursue ancillary revenue
strategies in terms of management priorities, investment
andresourceallocation,organisationsetup;
Customer perceptions of ancillary strategies and readiness
toparticipate,includingtheroleofsmartphonesandtablets;
CAPA projections for ancillary revenue potential for Indian
airlines by segment with profitability and return on
investmentanalysis.

ReleaseDate:31May2014
Earlybirdpriceto7March: US$5555
Advancepurchasepriceto15May: US$6995
Regularpricefrom16May: US$8555

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CAPAIndiaAviationSkills
&TrainingReport2014
Skills and training are essential for a professional, sustainable and
safe aviation industry. However the sector often forgets to plan for
people.
The growth of aviation in India will drive demand across every
discipline including pilots, cabin crew, engineers, air traffic
controllers, ground staff and handlers, administration, regulators
and management. CAPA estimates that the Indian aviation
workforce will expand from 150,000 today to 450,000 in ten years
time.
And growth in India is just one of the drivers of the demand for
educationandtraining.Otherfactorsincluderegulatorychange,the
advent of new technology and procedures, and the migration of
skilled Indian resources to other growth markets, particularly the
Gulf.
A failure to respond will have implications for growth, costs,
efficiency and safety. And Indian aviation has had firsthand
experience of the impact this can have, from the grounding of
aircraft due to a shortage of pilots to the downgrading of India to
Category2bytheFAAbecauseofinsufficientaircraftinspectors.
Thisreportonacriticalbutoftenoverlookedissuewillinclude:
Airlinewise and airportwise employee strength by
category;
Projected 10 year requirements for pilots, cabin crew,
engineersandnonoperationalstaff;
Impactofcompetitionforstafffromothergrowthmarkets;
Drivers of demand for aviation education and training
including growth, upgrading skills, new technologies and
processesandregulatoryrequirements;
Review of aviation education and training infrastructure in
India from flying schools to universities, maintenance
training facilities, flight simulators centres, cabin crew
academiesandtheairtrafficcontrolcollege;
AnalysisofteachingmethodsandtoolsinIndiaandthelevel
of progress towards competencybased training rather than
prescriptive courses, including status of initiatives such as
MPLpilottraining;
Regulation of training quality and status of harmonisation
withFAAandEASAstandards;
Industryperspectivesonthestrategiccompetitive,efficiency
andrevenuebenefitsfrommanagementeducation;
Experience of appointing expatriates in senior roles in
Indianaviationandwhytherehasbeensuchhighturnover;
Investor interest in the aviation education and training
sectorandhowthiscouldbeencouraged.

ReleaseDate:15June2014
Earlybirdpriceto7March: US$2555
Advancepurchasepriceto31May: US$3555
Regularpricefrom1June: US$4555

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CAPAIndiaAirCargo&
ExpressReport2014

Aircargoandexpresshasshownstronggrowthoverthelastdecade
butthesectorremainsataverynascentstageofdevelopment.Cargo
handling facilities have historically been poor, but are improving as
airportsaremodernised.Regulatoryissues,customsandquarantine
delays, limited technology deployment and a lack of specialist
handlingskillshavealsobeenachallenge.
However, with Indias economy expected to be among the most
dynamic in the world over the next two decades, the countrys
expanding manufacturing sector and increasing success in high
value sectors such as pharmaceuticals, automotive components,
fashiontextilesandjewellery,thegrowthpotentialisclearlyhuge.
And the opening up of multibrand retail, increasing sophistication
of the Indian consumer and the expansion of online retail will fast
forward the integration of the Indian economy into global supply
chains.Thiscomprehensivereportwillcover:
National, state and sector wise analysis of the structure of
the economy, and projected investment and growth of key
industries;
Review of Indias key trading partners including the value,
directionandcompositionoftradeflows;
Structure of air cargo and express operations including
airlines, airports, shippers and freight forwarders including
theircapabilitiesandmarketshare;
Analysisofleadingdomesticandinternationalcargoairlines
and global integrators, including passenger belly and
dedicatedfreighteroperations;
Historical performance of air cargo volumes and projected
growthoverthenext10years;
Review of airport infrastructure including cargo terminal
capacity, availability of dedicated equipment, technology,
warehousingandspecialisthandling;
Cargo facilitation issues including manpower and training,
customsandquarantine,documentationanddwelltimes;
Analysis of the wider supply chain including ease of surface
access to the airport, intermodal opportunities, location of
distribution and logistics infrastructure and free trade
zones;
Policyandregulatoryissuesimpactingaircargoandexpress
including taxation and transshipment regulations and their
impactonIndiascompetitiveness;
Roadmap based on realistic objectives and timeframes,
based on an identification of key gaps and an outline of the
rolethatkeystakeholderscanplaytostrengthenthesector.

ReleaseDate:30June2014
Earlybirdpriceto7March: US$5555
Advancepurchasepriceto15June: US$6995
Regularpricefrom16June: US$8555

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CAPAIndiaAirport&
TravelRetailReport2014
In 2012 CAPA had released the first India Airport & Travel Retail
Reportwhichwaswidelyacknowledgedasthemostcomprehensive
andinsightfulstudyeverconductedondutyfreeandretailinIndia.
ThefastgrowingIndianmarket,althoughrelativelysmallatpresent,
isonethatcannotbeignoredbyglobalbusinessesinvolvedintravel
retail. At the time of the last report for example, duty free liquor
saleshadalmosttripledinthepreviousthreeyears.
A multibillion dollar airport modernisation programme largely
funded by private sector investment, combined with strong and
sustained traffic growth and an increasingly affluent and
sophisticated Indian consumer make this one of the most exciting
opportunitiesinglobalretail.
And with India liberalising visa entry requirements for 180
countries from late 2014 we expect to see strong growth in
international inbound traffic which is important for driving
departuresrevenue.
Butuniquelocalconsumertastes,evolvingaspirationsandthelarge
numbers of first time travellers entering the market mean that
retailers cannot simply transplant global formats to India but need
todeveloplocalisedofferingsandkeepabreastofcontinualchanges.
The 2014 edition will present an update on key developments over
thelastcoupleofyearswithaparticularfocusonthefollowing:
Analysis of international and domestic traffic growth
together with forecasts through to 2023 for the ten largest
airports;
Status of airport modernisation programmes and planned
developments,includingupcomingretailtenders;
Impact of proposed privatisation of Airports Authority of
Indiaairportsonretailopportunitiesacrossthecountry;
Current and planned retail space and offerings at key
airports;
Assessment of the performance of airport retail concessions
acrossIndiaincluderevenuebyairport;
Indepth analysis of latest trends and sales figures by
category at the six metro airports e.g. liquor, fragrances,
beauty and cosmetics, chocolates, tobacco, fashion and
electronics;
Analysisofarrivalsanddeparturesretailperformance;
Key trends in passenger segments and their purchasing
behaviour as a result of evolving demographic and socio
economicdevelopments.
The objective of the report is to support planning and investment
decisions by global and Indian airport operators, retailers, brands
andinvestorswithaninterestintravelretail.

ReleaseDate:30September2014
Earlybirdpriceto31March: US$5995
Advancepurchasepriceto15Sep: US$7995
Regularpricefrom16Sep: US$9995